Home loan has been one of the most convenient financing options for many prospective homebuyers. Since availing of this credit option is a long-term commitment, borrowers should ensure to make necessary financial planning for easy and convenient repayment.
How can a loan EMI calculator help in better financial planning?
This calculator can help one get a clear estimate of the EMI payment amount, the total interest payable and other details with just a few clicks. This will help the borrowers to learn about the loan affordability and plan their finances accordingly.
In this regard, one can take the help of a home loan calculator for an informed decision. Here’s a detailed guide on how a home loan EMI calculator can help in efficient repayment and financial planning.
Potential borrowers can use these calculators at their convenience. They can input various values multiple times to compare the loan offers of various lenders. This will allow them to find a suitable lender that matches their financial needs and requirements.
How to use a home loan EMI calculator?
The online calculator is quite easy to use; applicants can use it by entering just three inputs. Here is a step-by-step guide on how to use a home loan EMI calculator without any hassle.
- Go to the official website of a reputed financial institution and open an EMI calculator.
- Put the requisite details such as principal amount, loan tenor and home loan interest rate.
- Get an idea of the EMI amount and total interest payable instantly.
Moreover, an applicant can enter different values multiple times to compare various home loan offers. One has to use the slider option for this or enter the data manually. These calculators are user-friendly and completely free.
Eligibility parameters to avail of a home loan
Before applying for home loan, potential borrowers should check the loan EMI calculator to assess loan affordability. Besides that one should also check the eligibility criteria for a seamless application procedure. They are the following:
For salaried individuals
- Age should be between 28-58 years
- Borrowers should have a stable income source with a minimum experience of 3 years
- Must be an Indian resident
- CIBIL score should be 750 or higher
- Age should be between 25-70 years
- Should be a resident of India
- One should possess 5 years of a stable business experience
- CIBIL score should be 750 or higher
The eligibility criteria may vary across lenders. Borrowers can utilise the home loan eligibility calculator to assess the eligibility. It is also necessary to be aware of the factors that can affect the home loan eligibility.
Also, individuals should keep the documents needed for a home loan handy to enjoy quick and hassle-free approval.
Essential documents required to apply for a home loan
Here is a list of documents that borrowers need to submit while applying to speed up their home loan application–
- KYC papers
- Income proof, including current salary slip/Form 16 (Salaried) and Profit and Loss statement, ITR documents and business existence proof (Self-employed)
- Passport-sized photograph
- Account statement for previous 6 months and more
Best 5 benefits of using a housing loan calculator
Below is a list of some notable advantages of using an online calculator –
- Convenient to use
The EMI calculators have an extremely user-friendly interface. It typically requires three essential data: home loan interest rates, principal amount, and tenor in their respective fields. These can be used any time anywhere and requires no log in or sign up hassle.
- Risk-free accurate results
The formula for EMI calculation is [P x R x (1+R) ^N] / [(1+R) ^N-1]’, Here P stands for the principal loan amount, R is the rate of interest on the loan, and N is the number of monthly instalments. While manual calculation can be prone to error, a home loan EMI calculator is designed to offer error-free results quickly.
- Zero additional charges
Finally, one of the noted benefits is that these calculators do not need additional usage charges. The users can access the lending institution’s website and use them conveniently.
Besides this, various reputed lending institutions and NBFCs provide pre-approved offers. These offers are available for financial products like loan against property, etc. Individuals can check their pre-approved offers by providing requisite details, such as their names and contact numbers. These offers can help streamline the loan application process.
So, using a home loan calculator, the borrowers can choose a suitable loan offer and plan their finances in a hassle-free way.